When the CPA is not independent with respect to a compilation client, what should the CPA do?
a. The CPA must not accept the engagement.
b. The CPA must include a separate paragraph in the report stating the lack of independence.
c. The CPA must change the engagement to a review engagement.
d. The CPA must issue a disclaimer.
b
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Which of the following is an example of having direct involvement when entering a competitive market?
A) using independent agents B) using wholesalers C) using distributors D) using retail stores
Which of the following is most likely a characteristic of firms that adopt a reactive approach toward the marketing environment?
A) They develop strategies to change the marketing environment. B) They take advantage of the opportunities provided by the environment. C) They take aggressive actions to affect the marketing environment. D) They view the marketing environment as a controllable element. E) They do not accept the marketing environment as it is.
Income tax expense affects assessments of profitability as much as any other expense. A common ratio for analyzing the effect of income taxes on profitability is the _____ rate, equal to income tax expense divided by financial reporting income before income taxes:
a. marginal tax b. effective tax c. tax burden d. statutory e. average
Explain the reason behind having a statute of frauds and give arguments for and against having such a statute